Recruitment can be an expensive game. Every HR professional is under the same old pressure when it comes to cutting costs. I’m sure we’re all agreed that cutting costs is a good thing, but knowing you should and knowing how are two very different things.
Well, fear not. The task is overwhelming no more. Here are two of the best ways you can reduce your recruitment costs. If you’re searching for the the best free online recruiting software to help reduce your costs, please keep reading to see how Recruiteze can help you!
Best Ways To Reduce Recruitment Costs
1 – Increase Staff Retention
This has to be the first on our list, because it’s such a no brainer. In marketing terms, the cost of acquisition is five times higher than the cost of retention. The exact same applies to recruitment marketing (recruitment is marketing, after all).
The logic is simple. If you keep more of your staff on board for longer, you need to recruit less new people in – which is a sure-fire way to reduce recruitment costs. Sure, retention does take investment too, but much less than acquisition does.
So, how do you increase your staff retention? Here are some suggestions.
Create a Beacon Culture
The ‘right’ people for your business are the ones who become your ambassadors. The employees who are loyal, committed and long-term. The first step to hiring these right people is creating the right culture. Your workplace is a beacon; you draw in what you radiate out.
Create a profile of who you’re looking to attract. That’s your starting point. Then work out what is attractive to those people. That’s where you need your culture to be. If you’re looking to attract razor sharp tech bods into a start-up environment, for example, you’re probably going the wrong way about it if your culture is super strict, suited and booted.
If you hire the right people, they’re infinitely more likely to stay with you longer-term, because they buy-into what you’re offering. There’s no right or wrong culture – you can be whoever you want to be, as I’m sure your mother once told you – but there is a right and wrong culture for you.
Develop your Training Offering
Progression is one of the biggest factors influencing candidate decision making, but HR professionals and other business leaders are still glossing it. In fact, studies have shown that career progression is the number one reason staff leave a role.
If you’re not offering exceptional training and development, your employee retention is probably suffering. An obvious way to improve, and reduce recruitment costs as a result, is to invest in training. You could look at employing a full-time in-house trainer, or investing in external training or online learning platforms. You need to send your employees the message that you invest in them, or they’re likely to find someone who will.
As we’ve written before, flexible working is a major trend for 2016 – and one that shows no signs of abating. As technologies develop and our attitudes to work change, the way we work change. People are increasingly looking for opportunities that can be more flexible than the traditional 9 – 5.
This might mean allowing late starts and late finishes, or it might mean a four day week. It might mean considering part-time options, or job-sharing. The possibilities to increase your flexibility are endless. Using a free online recruiting software, like Recruiteze, can also increase your flexibility and bandwidth. Read on to learn more.
Ultimately, the more flexible you can be, the wider the pool of candidates who want and are able to work with you. Your candidate retention is very likely to increase, as candidates who would leave to work in a more flexible environment find they can stay instead. Plus this isn’t even really a business cost. It might seem counterintuitive to begin with, but multiple studies have shown that flexible workers are actually more productive…
It might seem like an expense too far, but if you work out what you’ll be saving on recruitment costs if you can increase your employee retention… increasing salaries is often an obvious move.
Just don’t see it as a fix-all solution. Sticking a zero on the end of it might work in the short-term, but long-term you’re going to need to look at the more holistic factors above. Your aim should be to ensure your salaries are market competitive – to minimise the risk of an employee jumping ship for a quick increase. Introducing a bonus system could be a very cost-effective option to consider. Food for thought.
2 – Improve Your Hiring Process
Cost-per-hire is a ratio, right? How much you’re putting in vs. what you get out. In other words, if you can get more out, then your recruitment is more cost-efficient. With that in mind, a good way to reduce recruitment costs is to increase the number of hires your recruitment process can yield… pushing cost-per-hire right down.
So how do you increase your candidate yield? It’s about identifying mistakes in your process; mistakes that push good candidates away and could easily (and cheaply) be avoided. If you can minimise these errors, you’ll find you’re getting more qualified candidates through. A better-qualified pool of candidates means you’re more likely to find the right candidate, more quickly – which will also improve your employee retention. It’s a double whammy.
Here are some common elements of the recruitment process to consider overhauling. Did you know that using our free online recruiting software can also help you improve your hiring process? Keep reading to see how Recruiteze can help.
Barrier to Application
How long does application take? Can candidates submit their details straight from LinkedIn? Can candidates just send you a resume, or do they have to fill in loads of forms?
Recruitment process is about balance. How do you find the best people, but also provide an optimum candidate experience? At the application stage, you should be aiming to lower your barrier to application as much as possible. We’re in a candidate driven market at the moment, so the onus is on you to convince people to apply. If you make it difficult to do so, they simply won’t. Do you really want to risk losing the perfect candidate because you made it complicated to get in touch?
Nothing more quickly undermines the candidate experience than a lack of transparency. Employers can get away with a multitude of sins if they’re honest about them. Build in appropriate processes to ensure your candidates are always kept in the loop.
This means sending acknowledgement messages when you receive resumes, suggesting clear timelines, and delivering the news that applicants have been unsuccessful. Consider putting an FAQs section on your website to ensure candidates always know what to expect from you.
Don’t go quiet on your candidates – this is an easy way to improve your process, increase your candidate yield and therefore reduce recruitment costs.
You’ve almost definitely heard this one before, and I know the obvious objection. “Our hiring process takes a long time because we want to be sure we’re getting the right person”. I know, and I really get it. However, there are ways you can ensure the same rigour of interview process while still cutting the time down. And if you increase your transparency at the same time, candidates are much more likely to bear with you.
To shorten your process without compromising, look at things like how many stages you have, and how spread out they are. For instance, if you want candidates to go through a first, second and third stage interview – why not put all three on the same day? If you need your candidates to meet a whole series of managers, why not get everyone together in the same interview, rather than running hundreds of separate interviews? Using technology like video interviewing can also cut down the first interview stages, as can running group interviews and open days.
For the discerning HR professional, one of the biggest challenges can be internal hoops you‘re expected to jump through. If your management team are taking a week to give you feedback on a 30-minute interview, you’re fighting an uphill battle. Your role is to secure buy-in across the business for HR – explain why speed is so important, and introduce processes to facilitate that, from grassroots to CEO level. Without business buy-in, your job is more difficult than it needs to be. Another way to speed up your hiring processes is by using our free online recruiting software. Recruize helps you remove a few of the redundant processes you have to deal with each day. Keep reading to learn more.
OK, so this isn’t so much an aspect of your recruitment process so much as something that can really help you improve every aspect. Knowledge is power, in the digital age more so than it’s ever been. If you really want to improve your process, increase your candidate yield and reduce recruitment costs, this is for you.
If you don’t survey your candidates, with the best will in the world you’re guessing what their experience was. You might think you’re losing out because your process is slow, when in reality you’re doing something that makes candidates feel rushed, for instance.
You should survey both unsuccessful applicants and successful new hires to find out as much as you can. By asking for direct feedback, you’re allowing yourself to get right to the heart of what you might be doing wrong – so you can implement change.
How to reduce recruitment costs is a question that plagues HR professionals everywhere, but it’s not a challenge that can’t be overcome. By following these steps, HR professionals can ensure they reduce recruitment costs without compromising on quality of hire. Isn’t that the dream?
Watch this space for Part 2, offering more tips to help you reduce recruitment costs. Coming soon!
Don’t Overspend, Try Our Free Online Recruiting Software Today!
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